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March 15, 2005

Voter approval clears way for state's second ethanol plant


Voters in Lenawee County's Riga Township approved three zoning referendum measures Feb. 22, helping remove one of the last obstacles in the way of Great Lakes Ethanol's (GLE) bid to build and operate Michigan's second ethanol production plant. Approximately 65 percent of the rural township's registered voters turned out for the referendum, and approved each of the three component proposals by almost a 60-40 margin.

The three proposals sought confirmation of decisions made last summer by the Riga Township Planning Commission regarding the codification of a township industrial zone, and the rezoning of two agricultural parcels to allow industrial uses. One parcel was owned by GLE, the other by L&M Manufacturing, which operates an industrial facility across the township line, immediately north of the proposed GLE site.

Residents opposed to the ethanol plant circulated petitions to force a vote on the rezoning issues, citing environmental considerations and potential health and safety concerns. And despite a stepped-up opposition campaign in the final weeks leading up to the vote, GLE leaders and the region's corn growers woke early the next morning with cause to celebrate.

"On behalf of Great Lakes Ethanol, I would like to thank the Riga Township community for their overwhelming support of the zoning issues," said GLE Manager Ken Lake. "This gives us energy to move into our final project development phase, which includes final financing and construction team mobilization."

"We hope to break ground around April 1," said GLE Chairman Jeff Ehlert. "Our main contractors are in place, and we expect construction to take about 12 months."

Ehlert hopes to see the plant operational in spring 2006. The facility will be capable of producing 50 million gallons of ethanol per year from almost 18 million bushes of corn, purchased at a premium price from growers across the region.

By-products include 160,000 tons of carbon dioxide (CO2), usable in carbonating beverages and in the production of dry ice; and 161,000 tons of dried distillers' grain, valuable as a livestock feed.

The Lenawee County Farm Bureau helped spread the word with a mailing campaign to members, urging them to not only support the local farm economy with their votes, but to help spread the word among non-farmers.

"I know that a lot of people are really excited about it now that it's going to go through," said county Farm Bureau president Norm Emmons. "They'll get a better price for their corn."

Emmons works in feed sales, but isn't concerned that the pending availability of the dried distillers' grain will hurt his sales to the region's dairymen and beef producers.

"All the people who've put money into this thing are customers of mine, so I want to see it succeed," he said.

That level of support resonated at the state level, where the Michigan Farm Bureau (MFB) works for the advancement of crop-based fuels. Derived from its statewide membership of more than 47,000 farmers, Farm Bureau policy encourages biomass fuel production facilities, related infrastructure and expanded offerings of alternative fuel vehicles.

"In representing the interests of the state's farmers, Michigan Farm Bureau policy supports the use and production of alternative energy sources, especially those produced from renewable crops such as corn and soybeans," said MFB President Wayne H. Wood after hearing the results of the election.

"The resounding success of this referendum is an encouraging sign that agriculture's interests are echoed by the non-farming residents of Riga Township as well," Wood added. "We congratulate Great Lakes Ethanol for helping maintain the momentum of alternative fuel production in Michigan."

"This is a very positive vote and sets the wheels in motion for construction of the state's second ethanol plant, which will create good-paying jobs for the local economy and support corn prices for all area farmers through the value-added demand for Michigan-grown corn," said Bob Boehm, manager of MFB's Commodity and Marketing Department.

"The results are especially welcome as we awake to news of $50 per barrel oil prices. This vote demonstrates the growing recognition by the general public that agriculture can have additional positive benefits to our economy - beyond the mainstays of food and fiber production - through the production of environmentally friendly, domestically produced, renewable fuels."

In related ethanol news, The Andersons, Inc., announced in mid-February that it is considering its Albion grain facility as a possible location for an ethanol production facility. The Andersons operate in six states, Canada and Mexico.

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